·Describe the critical accountability and PAN roles of Transactor/Preparer and Reviewer

·Provide the minimum procedures for PAN reviews

II.Background

The Post Audit Notification (PAN) process was designed to help manage the review and approval of designated financial transactions in lieu of pre-approval work flow. PAN speeds-up the processing of certain financial transaction by eliminating the need for individual transaction approvals. Productivity gains can be significant where “blanket” approvals can be utilized over individual transaction approvals. PAN also eliminates workflow pre-approvals, therefore significantly reducing transaction turn-around times.

PAN notices provide timely notifications of transactions processed throughout the month, thus allowing for transaction errors to be corrected before month-end. PAN notices can alert Financial Managers of the processing of certain transactions. This can facilitate the subsequent monthly ledger review/analysis function.

Acritical management function PAN accomplishes is establishing accountability. Each financial transaction processed within an established accountability structure to ensure no one employee has total control of a transaction without a timely subsequent review by another employee. Such a system reduces the risk of inappropriate actions or uncorrected errors. The PAN process provides for a minimal level of separation of employee duties through the required involvement of at least two employees in each transaction.

Therefore, the distinct Transactor/Preparer and Reviewer roles are the most critical to ensure success within the PAN process. For transactions that do not generate PANs, validation should occur during the monthly ledger review/analysis process. This monthly ledger review/analysis process compares financial activity against the financial representation of a unit’s operating plan (budget). The budget becomes the control point where actual financial activity is analyzed against.

Various UCRFS reports provide a monthly analysis that compares actual financial activity against established budgets. Principles of Resource Planning and Financial Management promulgates that these reports be prepared monthly and management respond to any financial activity deviations from budget. When financial activity is not consistent with planned budgets additional validations are required to ensure ledgers are in a reportable condition.

III.Policy

Transactors are given the blanket authority to process budgetary and financial transactions for which he/she is qualified. Transactors are empowered to perform their duties and are accountable for the accuracy and completeness of budgetary and financial transactions. The Transactors must understand all relevant policies and regulatory requirements as well as the purpose of each transaction since these will be processed directly into the financial and Payroll Personnel System (PPS) generally without additional authorization; however, appropriate document to support the transaction should exist and be available for review.

PAN reviewers are also accountable for the accuracy and completeness of budgetary, financial, and PPS transactions. Reviewers also must understand all relevant policies and regulatory requirements as well as the purpose of each transaction since these have already been processed directly into the financial and PPS system. Reviewers must have knowledge and understanding of his/her unit’s operating and funding structure to recognize inappropriate transactions. If additional information is required, the PAN Reviewer should coordinate with the Transactor to obtain support. Reviewers must also exercise professional judgment in partnership with the department head and/or financial manager to determine the extent of procedures necessary to achieve an adequate PAN review.

Therefore, it is important that the Department System Access Administrators (SAA) working with their department head/financial manager understand the training requirements and control environment when assigning the various application Transactor, PAN Reviewer, Ledger reconciler and Ledger certifier roles to ensure the integrity of financial transactions and appropriate segregation of duties must exist.

IV.Procedures

A.A PAN Reviewer, at a minimum, is examining each transaction that triggers a PAN notice for:

·Appropriate FAU distribution (account, fund, activity, and function)

·Completeness

·Accuracy

·Compliance with policies, regulations, and other requirements

·Overall appropriateness (e.g., associated with a budget and appropriate for the departmental operations and University funds).

B.All PAN transactions must be reviewed within two (2) business days. Accounts Payable transactions (e.g., travel vouchers, vendor payments, and Procards) are somewhat different from other PAN transactions as the transaction results in the immediate disbursement of funds; tt is critical that these transactions are reviewed within two business days and disbursement errors related to amount and/or payee be immediately reported to the Accounting Office-Accounts Payable unit.

C.PAN e-mails are sent daily.

D.Two-day late UCRFS PAN notices are sent to the unit’s System Access Administrator (SAA). Five-day late notices are sent to the organization’s CFAO, the Controller and Audit & Advisory Services.

F.Reviewers should immediately respond to any noted errors or in-appropriate transactions that could indicate fraud or loss of University funds.

G.Reviewers, working with their SAAs, should make arrangements with “Back-up” Reviewers for absences.

H.Within UCRFS, the “Review All” button is a “shortcut” device that facilitates reviewing multiple PAN review lines. It reduces the number of “clicks” when a reviewer is presented with multiple items to review. This does not however diminish the Reviewer’s responsibility for each transaction.